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PAGE 1WHARTON CUSTOMER ANALYTICS INITIATIVE
CULTIVATING
D I S A S T E R
D O N O R S
Sponsored by Russ Reid and the American Red Cross
WCAI Research Opportunity8 December 2011
http://wcai.wharton.upenn.edu @WhartonCAI
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PAGE 2WHARTON CUSTOMER ANALYTICS INITIATIVE
INTRODUCTIONS
Rob ChristianVice President, Analytics
Janet Couperthwaite Account Director
Tony DiPasqualeSenior Director, Market Intelligence
John WilburnManager, Consumer Marketing
Elea McDonnell FeitResearch Director, WCAI
Eric T. BradlowK.P. Chao Professor
Professor of Marketing, Statistics, and EducationVice-Dean and Director, Wharton Doctoral Programs
Co-Director, WCAI
Peter S. Fader Frances and Pei-Yuan Chia Professor
Professor of Marketing
Co-Director, WCAI
Charles Pensig Assistant Research Director, WCAI
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PAGE 3WHARTON CUSTOMER ANALYTICS INITIATIVE
T H E A M E R I C A N R E D C R O S S A N D R U S S R E I D
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A B OUT: THE A MERICA N RED CROSS
Since its founding in 1881 the American Red Cross has been America'spremier emergency response organization. As part of the worldwidemovement that offers neutral humanitarian care to all, the American RedCross distinguishes itself by also aiding victims of natural disasters.
Over the years, the organization has expanded its services, always withthe aim of preventing and relieving suffering.
The American Red Cross is where people mobilize to help their
neighbors—across the street, across the country, and around the world.
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PAGE 5WHARTON CUSTOMER ANALYTICS INITIATIVE
A B OUT: THE A MERICA N RED CROSS
In the US alone, the American Red Cross responds immediately to nearly 70,000disasters, including:
House or apartment fires (the majority of disaster responses)
Hurricanes, floods, earthquakes, and tornadoes
Hazardous materials spills, transportation accidents, explosions, and other naturaland man-made disasters
In addition to domestic disaster relief, the American Red Cross offers services in:
Community services that help the needy
Support and comfort for military members and their families
Collection, processing and distribution of lifesaving blood and blood products
Educational programs that promote health and safety
International relief and development programs
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PAGE 6WHARTON CUSTOMER ANALYTICS INITIATIVE
A B OUT: THE A MERICA N RED CROSS
Around the world the American Red Cross helps vulnerable people and communitiesprepare for, respond to, and recover from natural disasters, humanitarianemergencies and health crises by mobilizing the world’s largest humanitariannetwork made up of 187 Red Cross and Red Crescent national societies and morethan 10 million volunteers.
Working with partners around the globe we support:
• Disaster Response and Recovery
• Disaster Preparedness
• Disease Prevention—including the Measles Initiative• Aid in Reconnecting Families
• Teaching Humanitarian Law
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PAGE 7WHARTON CUSTOMER ANALYTICS INITIATIVE
A B OUT: RUSS REID
At Russ Reid, we’re devoted to helping nonprofit organizations grow beyondprobabilities. Every day, we tenaciously pursue fundraising innovations that inspire
action and commitment for the causes we serve. And together with our clients, we’rehelping transform millions of lives around the world.
World’s largest direct response agency exclusively dedicated to nonprofitorganizations and fundraising
Preferred fundraising partner of more than 200 nonprofit organizations
We raise over $700 million a year for our clients
Expertise in multi-channel integrated campaigns
Data and analytics focused for constant campaign performance improvements
Our goal is to make the world a better place by helping
our client partners achieve their missions.
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PAGE 8WHARTON CUSTOMER ANALYTICS INITIATIVE
T H E
STAART
P R O G R A M
&
DONATION
P R O C E S S
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THE STA A RT PROGRA M: INTRODUCTION
STAART (Strategy Through Applied Analytics, Research, and Testing)
National Disaster Donor Conversion Program
Began originally as Project RED (Retaining Episodic Donors) after HurricanesKatrina and Rita and the Southeast Asian Tsunami brought with them thousandsof new, unsolicited donors to American Red Cross (white mail, phone, online).
These donors were not affiliated to any chapter in particular, but had given giftsdesignated to disaster relief to the American Red Cross, and the goal of theprogram was to convert them to ongoing support of the continued work of ARC.
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PAGE 10WHARTON CUSTOMER ANALYTICS INITIATIVE
THE STA A RT PROGRA M: A UDIENCE
The STAART Program segments donors into three audiences:
Pre-qualified lead (PQL) – Donor who has given in response to a disaster once(either solicited or through a solicitation/acquisition program)
Cultivation – Donor who has given a second time and is now considered a“current supporter”
Lapsed – Donor who gave a second gift in cultivation has not given a gift in thelast 18 months
Lapsed donors move back into the PQL communication stream
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PAGE 11WHARTON CUSTOMER ANALYTICS INITIATIVE
THE STA A RT PROGRA M: RESULTS
Since the STAART program has been in place, it has become a resource with threedistinct and significant values.
o A productive base of generous, unaffiliated donors
o A resource for generous disaster response
o A trove of R&D for enhancing all Red Cross fundraising for individual support
Through Project RED and STAART, the Red Cross was able to fully explore thepower and benefits of donor modeling, which enabled the program to meet its
goals. The conversion of disaster donors was maximized to annual support and atthe same time provides net revenue to both chapters and national.
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PAGE 12WHARTON CUSTOMER ANALYTICS INITIATIVE
THE DONATION PROCESS: DISASTER GRA M (D-GRAM)
Disaster Gram (D-Gram)
Used at times of disaster
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PAGE 13WHARTON CUSTOMER ANALYTICS INITIATIVE
THE DONATION PROCESS: PQL
Direct Mail
Sent to PQL and Lapsed Audiences
Letter, verbal appeal, and labelsas premium offer incentive
Response device included
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PAGE 14WHARTON CUSTOMER ANALYTICS INITIATIVE
THE DONATION PROCESS: CULTIVATION
Direct Mail
Sent to current supporters(cultivation)
Letter, verbal appeal
Response device included
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PAGE 15WHARTON CUSTOMER ANALYTICS INITIATIVE
THE DONATION PROCESS: NEWSLETTER
Current supporters – 3x yr.
Response device included
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PAGE 16WHARTON CUSTOMER ANALYTICS INITIATIVE
THE DONATION PROCESS: RESPONSE DEVICE
Direct Mail Reply Card
Source Code to trackcampaign
“Fund” that will receivemoney, e.g.
o Where the need is greatest
o Disaster Relief
o Local Red Cross Chapter
o Current Event Fund to receive moneySource Code
Back
Front
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PAGE 17WHARTON CUSTOMER ANALYTICS INITIATIVE
DATA
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PAGE 18WHARTON CUSTOMER ANALYTICS INITIATIVE
DATA
Donations (~500k donors who gave their first donation between 2006 and 2011)
Date
Amount
Fund that received donation (e.g., General Fund, Haiti Earthquake Fund)
Source code for interaction that the donation is attributed to
Interactions (for the subset who first gave between 2009 and 2011)
Date
Campaign type
Campaign initiation date
Target group
Channel (mail, online, phone, newsletter)
Package code (pdfs will be available for many of the packages)
SegmentWCAI will provide a detailed data key along with .csv files and a database; and can assist withdata processing.
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PAGE 19WHARTON CUSTOMER ANALYTICS INITIATIVE
DATA
Summary
Cohort Cohort Size Number of Interactions Number of Gifts
10/1/2009 1,800 9,500 1,80011/1/2009 1,500 29,100 1,700
12/1/2009 2,500 400 2,800
1/1/2010 1,900 31,700 2,300
.
.
.
9/1/2011 2,300 15,600 4,200
* values on this page are synthesized
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PAGE 20WHARTON CUSTOMER ANALYTICS INITIATIVE
DATA
Potential Research Questions
What is the best way to convert "disaster donors" – those who first give to the American Red Cross in response to or during a major disaster relief effort – tolong-term donors?
What are the general patterns of donation response among these donors? Dothey always give in response to disasters? Are these donations incremental oversome baseline? Or do disasters “pull ahead” donations that would have otherwisebeen made by regular donors?
Can likely repeat donors be identified shortly after their first donation so thatresources are not wasted on soliciting those unlikely to give again?
What types of communications (channel, creative execution, frequency) appeal tothese donors and how should disaster donors be cultivated?
What types of donors are acquired during different types of disasters? For
instance, do disasters tend to draw more donations from people who live nearwhere the disaster occurred? What types of donors give to international versusUS disasters?
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PAGE 21WHARTON CUSTOMER ANALYTICS INITIATIVE
DATA
How many donations did each donormake?
FewDonations
ManyDonations
* values on this page are synthesized
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PAGE 22WHARTON CUSTOMER ANALYTICS INITIATIVE
DATA
How much was given with eachdonation?
How much was given over each donor’slifetime?
Low Amount
High Amount
Low Amount
High Amount
* values on this page are synthesized
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PAGE 23WHARTON CUSTOMER ANALYTICS INITIATIVE
DATA
Gifts by Month
Haiti Earthquake
PakistanFloods
JapanEarthquake
2011Storms
* values on this page are synthesized
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PAGE 24WHARTON CUSTOMER ANALYTICS INITIATIVE
DATA
Marketing Channels
* values on this page are synthesized
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PAGE 25WHARTON CUSTOMER ANALYTICS INITIATIVE
DATA
Response Rate by Campaign Type
All
Segments PQL Cultivation Lapsed
* values on this page are synthesized
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PAGE 26WHARTON CUSTOMER ANALYTICS INITIATIVE
DATA
Campaign Copy
Images of contents of direct mailings going back to 2009 will be madeavailable for analysis
WCAI will be coding this copy for key features
If you are interested in studying the effect of changes in copy on theresponse, please contact [email protected] before yousubmit your proposal.
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PAGE 27WHARTON CUSTOMER ANALYTICS INITIATIVE
Q & A
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PAGE 28WHARTON CUSTOMER ANALYTICS INITIATIVE
Q&A : PROPOSA L PROCESS
Review the WCAI FAQ on Research Opportunities:http://www.wharton.upenn.edu/wcai/dump/FAQ.cfm
Submit a brief proposal to [email protected] by January 3,2011. Proposals should be less than 2,000 words and should include:
o Research team, affiliations and e-mail addresses
• Please designate a corresponding author
o Objectives & contribution to the academic literature
o Proposed methods
o Rough timelineo Potential for managerial insights & impact for ARC and other non-profits
o PDF format preferred
o Please put “RO: ARC Proposal” in the subject line
Proposals will be evaluated by Pete Fader, Eric Bradlow, Elea Feit, Tim Gilbride,Bas Donkers, Rob Christian, Janet Couperthwaite, Tony DiPasquale, and JohnWilburn
Clean data can be in your hands by the end of January!
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PAGE 29WHARTON CUSTOMER ANALYTICS INITIATIVE
Q&A : B ENEFITS FOR AWA RDEES
Access to unique data
Assistance with data cleaning and preparation
Teleconference Q&A sessions with the corporate partners
Invitation to a private symposium to share your research findings with thecorporate partner
Promotion of your research paper through the WCAI SSRN Research PaperSeries
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PAGE 30WHARTON CUSTOMER ANALYTICS INITIATIVE
Q& A : OTHER OPPORTUNITIES FOR RESEARCHERS
If you registered for this webinar, you will receive regular announcements about:
o Research Opportunities like this one
• Sirius/XM coming in early 2012
o Grant/funding opportunities
o WCAI Conferences
• Marketing on the Move: Understanding the Impact of Mobile on ConsumerBehavior, Feb 27-28 at The Wharton School (co-sponsored with MSI)http://www.wharton.upenn.edu/wcai/MobileConference2012.cfm
o Announcements are also available at http://wcai.wharton.upenn.edu
Visit SSRN Research Paper series: http://www.ssrn.com/link/Wharton-Cust- Analytics-Initiative-RES.html
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PAGE 31WHARTON CUSTOMER ANALYTICS INITIATIVE
Q&A : MORE AB OUT WCAI
The Wharton Customer Analytics Initiative (WCAI) is thepreeminent academic research center focusing on thedevelopment and application of customer analyticmethods. Acting as "matchmaker" between academia and
industry, WCAI has had a broad impact on the practice of data-driven business decision-making, and the dissemination ofrelevant insights to managers, students, and policy makers.
Based in the Wharton School’s MarketingDepartment and designed to capitalize onWharton’s longstanding strength inconducting empirical research, WCAI is an
interdisciplinary effort that brings a passionatedata-driven perspective unmatched by anyother business school.
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